Elkem has accelerated its turnaround efforts after reporting second-quarter EBITDA of NOK 523 million, while completing a major cost-cutting programme ahead of schedule and strengthening its financial position through a NOK 1.8 billion equity raise and refinancing.
The Norwegian silicon and carbon products producer reported EBITDA of NOK 523 million for the second quarter of 2026, down from NOK 645 million in the same period last year. The decline was mainly driven by lower silicon sales prices, but the company said its transformation programme is gaining momentum.
Revenue for the quarter reached NOK 3.7 billion, down 4 per cent year-on-year, while EBITDA fell 19 per cent compared with the second quarter of 2025.
“Elkem’s transformation is gaining real momentum, with the organisational streamlining completed, cost reductions exceeding targets, and a successful refinancing demonstrating strong market confidence.
"We are actively pursuing strategic options across the portfolio while positioning for growth and margin improvements. Structural demand, driven by digitalisation, AI infrastructure, energy transition and defence, continues to strengthen our long-term outlook. This provides a solid foundation for sustainable value creation,” says CEO Helge Aasen.
Elkem’s global cost-reduction programme, launched in March 2026, is moving faster than planned. The company originally targeted a workforce reduction of around 300 full-time equivalents, but expects the final reduction to approach 400 positions.
The programme is designed to deliver annual savings of more than NOK 600 million. Elkem is also targeting a NOK 1 billion reduction in working capital, with NOK 841 million already achieved by the end of the second quarter.
Capital expenditure remains tightly controlled, with investments capped at NOK 1 billion for the full year. Investments during the first six months totalled NOK 304 million.
Elkem’s Silicon Products division continued to face challenging market conditions, with weak prices for silicon and ferrosilicon weighing on earnings. However, EBITDA improved compared with the previous quarter as production resumed at the Elkem Rana and Elkem Salten plants.
The division recorded operating income of NOK 2.95 billion, down 4 per cent from the same quarter last year, while EBITDA declined 28 per cent year-on-year.
The company said EU safeguard measures introduced on ferroalloy imports in November 2025 have so far had limited impact on pricing due to weak demand and ongoing substitution risks. However, prices could improve as ferroalloy supply tightens following the EU’s decision to reduce tariff-free steel quotas and increase tariffs above quota limits from 1 July 2026.
Carbon Solutions reported EBITDA of NOK 172 million, down 29 per cent year-on-year, mainly due to lower sales volumes and reduced average sales prices.
Elkem Iceland has been reclassified as discontinued operations after continued weak performance since 2024. The company said the operation has been challenged by a structurally higher cost base compared with other Elkem plants, and strategic options are now being evaluated.
Elkem completed a NOK 1.8 billion equity raise during the quarter and refinanced its main bank facilities of EUR 1 billion. The company also secured a NOK 750 million loan from the Nordic Investment Bank with a 10-year maturity.
The measures have significantly strengthened Elkem’s financial position. At 30 June 2026, equity stood at NOK 12.6 billion, representing 44 per cent of total assets. Net interest-bearing debt was NOK 6.6 billion, equivalent to 3.2 times EBITDA.
The company held NOK 4.9 billion in cash and cash equivalents, alongside more than NOK 4.5 billion in undrawn credit facilities.
Elkem and Statkraft have signed a new long-term power purchase agreement covering 2031–2037. The agreement secures 1,534 GWh of electricity supply for Elkem’s Bjølvefossen plant in Norway, strengthening the company’s portfolio of long-term energy contracts.
Leadership rejig: Elkem has appointed Dag Teigland as its new CEO, effective 3 August 2026. Current CEO Helge Aasen will step down from the role and become chairman of the board.
Teigland brings more than two decades of industrial and investment experience and previously held several leadership positions at Elkem between 1998 and 2002.
